{"id":103744,"date":"2025-11-18T05:58:26","date_gmt":"2025-11-18T05:58:26","guid":{"rendered":"https:\/\/sotnews.agency\/?p=103744"},"modified":"2025-11-18T05:58:26","modified_gmt":"2025-11-18T05:58:26","slug":"vat-reform-ends-years-of-business-pain-gncci-boss-declares-major-victory","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=103744","title":{"rendered":"VAT reform ends years of business pain \u2013 GNCCI boss declares major victory"},"content":{"rendered":"
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The Ghana National Chamber of Commerce and Industry (GNCCI) says government\u2019s overhaul of the Value Added Tax system marks the end of years of frustration for local businesses. <\/p>\n

Chief Executive Mark Badu Aboagye says the business community has pushed for this reform for almost four years and is now relieved to see it finally delivered. <\/p>\n

\u201cLargely, this is one of our major concerns for the past three to four years, and in all the budgets, one of our major input is for the VAT to be reformed,\u201d he said. <\/p>\n

He recalled that businesses were excited when government first hinted at a reform last year. <\/p>\n

\u201cWe were happy when it was announced last year that we\u2019re going to see a reformation and possibly a reduction in the effective batch rate,\u201d he explained. <\/p>\n

But that optimism faded when nothing changed for almost a year. For him, the latest budget brings closure. <\/p>\n

\u201cUnfortunately, it took almost a year, and then just this budget you\u2019ve seen that it\u2019s actually been reformed. So we are happy about it. I think one of our major issues, our major problems, has been resolved for us.\u201d<\/p>\n

He says the impact on businesses will be immediate because the old system was too difficult for many to work with. <\/p>\n

\u201cSo for our members, our complaint largely was that it was so complex,\u201d he said. The structure itself was a stumbling block. <\/p>\n

\u201cI mean, it\u2019s a VAT that you see the Standard VAT being combined with straight line levies. In fact, the competition itself was a challenge for most of our members, so some of them are not saying that they don\u2019t want to pay, but how to even compute it was also, was a challenge.\u201d<\/p>\n

Mr Badu Aboagye said businesses also struggled because key levies became a direct cost. <\/p>\n

\u201cNow we have said that the straight line level was translating into a direct cost to the businesses. So you see a direct cost of the one we pay for the NHIL, the one we pay for the get fund and also the almighty COVID level. These are levees that you cannot claim an input vacuum. So it became a direct cost to businesses,\u201d he said.<\/p>\n

He believes the consolidation changes everything. <\/p>\n

\u201cNow that we have consolidated and it is part of the Standard VAT, now becomes a VAT that a business person can also claim an input VAT, so it doesn\u2019t become a direct cost to businesses again,\u201d he added.<\/p>\n

He said price effects will come later, but the system is now clearer. <\/p>\n

\u201cSo there we are going to have there and how it affects prices. We\u2019re going to discuss secondly. Now is simplified. <\/p>\n

\u201cSo when you pay your 20% you know how to calculate your output, VAT, your input VAT, and how to do your deduction and the ones that you have to pay to government, obviously, you have to also pay to government.\u201d<\/p>\n<\/div>\n

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\"VATThe Ghana National Chamber of Commerce and Industry (GNCCI) says government\u2019s overhaul of the Value Added Tax system marks the end of years of frustration for local businesses.<\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[4620,319,2093,1883,10,9,1887,4030],"tags":[],"class_list":["post-103744","post","type-post","status-publish","format-standard","hentry","category-2026-budget","category-economy","category-ghana-national-chamber-of-commerce-and-industry-gncci","category-national","category-politics","category-popular","category-top-story","category-vat"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/103744","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=103744"}],"version-history":[{"count":0,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/103744\/revisions"}],"wp:attachment":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=103744"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=103744"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=103744"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}